No rate cut, but dovish undertone likely

The stance can be changed, and if that doesn't happen, the hawkish underdone will not continue

On August 1, in a closely-run decision, the Bank of England lowered its main interest rate by a quarter percentage point to 5 per cent, marking the first rate cut since the Covid pandemic outbreak in March 2020. In a five-to-four verdict, BoE Governor Andrew Bailey joined four other policymakers in bringing the rate down from a 16-year high.

The decision to cut interest rates is "an important moment in time", Bailey said, but warned people not to expect a sharp fall in the policy rate in the coming months.

The day before, the US Federal Reserve’s